Examples from Final exams with solutions:
1.(20 pts) GNO is a retail phone-catalog company that specializes in outdoor clothing and equipment. A phone station at the company will be staffed with either full time operators or temporary operators 8 hours per day. Full time operators, because of their experience and training, process more and make fewer mistakes than temporary operators. However, temporary operators are cheaper because they receive a lower wage rate and they are not paid benefits. A full-time operator can process about 360 orders per week, whereas a temporary operator can process about270 orders per week. A full-time operator averages
1.1 defective orders per week, and a part time operator incurs about 2.7 defective orders per week. The company wants to limit the defective orders to 200 per week. The cost of staffing a station with $610 per week, and the cost of a station with part-time operators is
$450 per week. Using historical data and forecasting techniques, the company has developed estimates of phone orders for an 8-week period, as follows:
Week Orders Week Orders
1
19,500 5
33,400
2
21,000 6
29,800
3
25,600 7
27,000
4
27,200 8
31,000
The company wants to hire and add full-time operators as the 8 week period progress, although once it hires full-time operators, it will not dismiss them. On the other hand, the part time operators can be hired on weekly basis. Please formulate an LP in order to help the company to determine how many full time and part time operators to hire each week to meet weekly demand while minimizing labor costs.
2. (10 pts) Norfolk, Virginia, a major seaport on the East Coast, has a ship coal-loading facility. Coal trucks filled with coal arrive at the port facility at the mean rate of 149 per day (Poisson distributed). The facility operates 24 hours a day. The coal trucks are unloaded one at a time, on a first-come, first served basis, by automated mechanical equipment that empties the trucks in a constant time